Dollar slumps as US extends and pretends

Morning Report: 08.45 London

• This morning, the US dollar is selling off heavily after last night’s US debt deal which merely say the deadline extended and borrowing carried over until February. Stock markets shot higher last night, but there is a general tone of risk aversion this morning.

 • The USD/JPY is the biggest mover as the strengthening yen meets a weaker dollar.

 • Gold is also performing well, helped primarily helped by the dollar backing off.



 

 • Other dollar pairs are following suit, with the EUR/USD and GBP/USD up 0.68%.



 • The Australian dollar is lagging though after PIMCO advising that Aussie rates could remain lower for longer.



 Coming up today:

• Coming up today, we have UK retail sales at 09.30.

• US unemployment claims follow at 13.30, with the Philly Fed Manufacturing index at 15.00.



Trade Idea:

• This morning, the USD/JPY has dropped heavily, but in recent weeks, it’s been rare that a sell day has been following by another sell day.

A good way to trade this could be a HIGHER trade predicting that the USD/JPY will close above 98.50 in 2 days time could return 201%.

This Daily Market Report is written by Dave Evans, Professional Trader. This is presented as an idea to stimulate binary option trading ideas and is not a financial advice.

Summary: